Journal of Management & Governance

, Volume 18, Issue 2, pp 541–587

The impact of CEO turnover on firm performance around interim successions


  • Vincent J. Intintoli
    • College of BusinessSouthern Illinois University Carbondale
  • Andrew Zhang
    • College of BusinessThe University of Nevada Las Vegas
    • College of BusinessSouthern Illinois University Carbondale

DOI: 10.1007/s10997-012-9253-2

Cite this article as:
Intintoli, V.J., Zhang, A. & Davidson, W.N. J Manag Gov (2014) 18: 541. doi:10.1007/s10997-012-9253-2


Prior research reports that financial performance of firms that hire interim CEO successors is worse following interim CEO appointments than those that hire permanent successors. We find that this underperformance occurs only following voluntary turnover interim appointments, which represent a small fraction of all voluntary turnovers and roughly a quarter of all interim appointments. We do not observe poor performance when boards hire interim successors following instances of forced departure. Further analysis shows that poor performance during voluntary turnover interim successions are limited to using operating performance measures; market performance is not significantly worse following interim successions. Our results indicate that many interim appointments should not be viewed as value decreasing endeavors and future research on post-succession financial performance should consider the circumstances surrounding the turnover of the predecessor.


CEO turnoverInterim successionCorporate governance

Copyright information

© Springer Science+Business Media New York 2012